MANILA, PHILIPPINES (18 October 2004) - ADB's program for
Kazakhstan will back the Government's medium term priorities in
harnessing strong economic growth to benefit the poor,
according to a Country Strategy and Program (CSP) Update for
2005-2007 endorsed by the Board of Directors.
Fueled by the oil sector, the country's gross domestic
product grew by an average of 11% during 2000-2002 and 9.2% in
2003. This strong performance is expected to continue with
growth of 8-10% over the medium-term.
"Kazakhstan's fast-paced development has led to rapidly
evolving development priorities," says Kazuhiko Higuchi,
Country Director of ADB's Resident Mission in Kazakhstan.
"The country's strong economic growth has thus underscored
the need for inclusive, pro-poor growth."
While the continued economic growth has created new jobs and
improved living standards in Kazakhstan, disparities still
exist between rural and urban areas. With rural poverty three
times as high as in urban areas in some areas, the Government
is making efforts to develop rural areas.
The strong growth has also led the Government to look to
financing more of its development programs domestically. The
Government aims to progressively reduce the budget deficit over
the medium term. Therefore, Government borrowing will remain
"Substantial oil revenues have increased the domestic
resources available to the Government for carrying out its
development programs," adds Mr. Higuchi.
"However, the Government will still borrow to gain knowledge
on developing sound investment programs and ensuring sound
management of public assets from the projects."
ADB's strategy in Kazakhstan focuses on private sector
development for inclusive growth, human development,
environmentally sustainable development, and regional
ADB will propose average annual lending of US$50 million.
The nonlending program will continue to be the main instrument
for ADB operations in the country, with 13 technical assistance
(TA) grants totaling $4.8 million being planned for the next
The proposed lending program for Kazakhstan will focus on
projects with strong development impacts or innovative
approaches. Among the projects ADB plans during 2005-2007
* A regional rural development project in
* A rural water supply and sanitation project and a
stormwater management project in 2006
* A water resources management and land improvement
project in 2007.
Lending amounts will be determined mutually between the
Government and ADB.
As of end-December 2003, ADB had approved 12 loans for nine
projects in Kazakhstan, totaling $501.6 million. Since joining
ADB in 1994, ADB has also approved 51 TAs totaling $23.4
CSPs define ADB's medium-term development strategy in
agreement with the country. A CSP update is usually prepared
every year, taking into account the continued relevance of the
CSP, its implementation, and ADB's operational program for the
next three years.